We have:
Groceries
Gas (put in on a WM gift card and save 3 centes per gallon!)
Church offerings
Blow money for the kids
Kids' clothes
Miscellaneous cash (often dh has to use bank card for work purchases, then he gets reimbursed from petty cash. We take that $ and put it in here.)

Blow $ for each of us just goes into our wallets (I put mine in a special compartment to keep it separate from other cash).

I used it for years I think before it had a name.
This is how it worked for us.

The only money in my checking account was for bills.
Savings was our savings. Long term and short term different accounts.

Envelopes were for everything else.

Groceries- I really had to watch this one
Gas- somewhat flexible and did not budget to the penny
Entertainment- if there was enough left over in those days, this included eating out. It was also our blow money.
Miscellaneous- was for brownie dues, church, piano lessons and that type of thing
Secret stash from DH- this envelope was taped behind a mirror in my living room and I think the name is self explanatory. I must say I did not hoard this money for myself it was always used for the good of the family.

As for clothing I shopped in the spring and fall as needed, DH has always worked overtime so we bought clothing as we could afford it.

i used them for different things i am saving for, i write little notes on the front to say whats its for, the date it needs to be saved by and the total needed, ive used it for my holiday, dentist bills and the others in my sig, to me i find it easier to see how much i have for each, i also seal he envelope when i have the amount i need in there s i dont go into it or someone cant take the cash without me knowing. i try not to keep too many around due to the amount of cash in them

I use mine for everything - groceries, gas, haircuts, oil changes, pet food, clothes. Every week the cash comes out and is divvied up to each one. I have a max $ on each envelope and if its full, the extra goes in misc.

When we need things like furnace filters or a new car battery, I reach in the misc envelope and its like money from heaven

It worked. I learned to control what I was spending.
Once the grocery allotment was gone... it was gone. You had to wait until the end of the month to fill the envelope. I learned to exercise due dillegence in spreading out the purchases so that I had $$ for bread and milk on the last week. KWIM?

I never touched the checking account unless I was paying a bill for which it was earmarked for.

A new bill added? take out more from your envelopes to cover the increase in the bills.

Most important. It is SOOOOOOOO hard to spend that cash. you really think twice about it. And many times, you just decide it's not worth it.

We use it mostly for bills that AREN'T due monthly, for specific savings, and cash allotments for the month.

non-monthly bills
(I put a portion of what the bill will be in each month. Then it's all there when the bill comes due. I try to stay one month ahead. That was hard to get the extra month stashed but now that its there it's no problem.)Garbage
Water
Car insurance
OPC
Paper

Cash
(I try to put a portion of the months worth in each week and stay a month ahead. I've got this screwed up at the moment due to overspending. It draws my attention pretty fast.)Gas
Groceries
Extras

Savings
(I put money in either weekly or monthly and let these build only slightly and then transfer them to somewhere harder to get to. These categories frequently change.)trip fund for BILs upcoming wedding
Christmas fund

We've actually done this for years, sometimes were really good, and other times we "borrow" from another envelope- that's bad. It's time to be good again though. With the increase in everything- we have to really pay attention and behave.